Major M&A set for record-breaking year

A quarterly report by Allen & Overy has found that despite a low number of transactions globally, this year is likely to be one of the strongest years since the GFC.

According to data from Mergermarket, M&A values rose by 19% ($1.047tn) in UK Q3 when compared with last year.

Australia ranked in the global top 20 with the help of Federation Centre’s merger with Novion Property Group at $7.8 billion and Japan Post's acquisition of Toll at $6.5 billion.

Geoff Simpson, partner at Allen & Overy, told Australasian Lawyer the trend looks to continue with significant mega deals already announced for the second half of this year, including Vocus and M2’s $3bn merger and Equifax’s recommended A$2.5bn bid for Veda.

Simpson said that the fall in the Australian dollar combined with favourable financing is likely to continue to attract foreign bidders.
“We expect a continued focus on strategic growth through M&A in financial services and property,” he said.